Blockchain in Banking

To understand Blockchain in Banking, first,let’s discuss how a Bank Transaction Work? So when people share a google spreadsheet and wish it to be edited by other person, you will wait till the other person edits it and send it back to you.

In other words, two persons could not edit it at the same time. So it is same is the case with Bank Transaction. It is said that banks lock access to the money debited from your account, till the time, they get confirmation that it has been credited in the target account. As long as the transaction is not confirmed, it could be forged.

Now take instance, if there is transaction/exchange where more than 2 people/entities are involved. In such situations, to wait for every person/entity to confirm the transaction and then proceeding would become a cumbersome and time taking process. Also maintaining the records of transaction in such a process would be hard almost impossible.

But what would happen, if the data is not centralized and is shared between networks of computers called Nodes. Then, it is next to impossible to alter the data or steal it. This same concept of shared database/distributed database form the basis of Blockchain Technology.

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